Examples of Exoneration Clauses in Practice

Here are some examples of exoneration clauses that are commonly found in various contracts:

  • Lease agreement: “The Lessee is not responsible for damage caused by force majeure such as natural disasters, war or fire.”
  • Sale and purchase agreement: “The seller is not responsible for product damage caused by use that does not comply with the instructions for use.”
  • Service contract: “The service provider is not responsible for losses caused by errors or omissions by the service user in following the instructions given.”

Although exoneration clauses have an important function, their application often raises various legal issues. Some of the issues that often arise include:

  1. Imbalance of Bargaining Power: Exoneration clauses are often drafted by parties with a stronger bargaining position, forcing the weaker party to accept the terms without much choice.
  2. Injustice: Exoneration clauses can create injustice for the injured party, especially if the loss occurs due to the negligence or fault of the party protected by the clause.
  3. Conflicts with Public Interest: Some exoneration clauses may conflict with public interests and laws and regulations, especially if the clause eliminates liability for losses caused by unlawful acts or gross negligence.